A company traded an old machine for a new machine, receiving a $10,500 trade-in allowance and paying the remaining $37,200 in cash. The old machine had cost $39,000, and straight-line accumulated depreciation of $27,200 had been recorded as of the exchange date under the assumption it would last five years and have a $10,000 salvage value. 1. What was the book value of the old machine on the date of the exchange? 2. What amount of gain or loss (indicate which) should be recognized in recording the exchange, assuming the transaction has commercial substance? 3. What amount of gain or loss (indicate which) should be recognized in recording the exchange, assuming the transaction has no commercial substance? 4. What amount should be recorded as the cost of the new machine?